Best credit cards for a 500 credit score (or less)

Having a credit score of 500 or less does limit your options when it comes to credit cards, but it doesn’t fully exclude you from qualifying for a good one. Several credit cards designed for credit scores in this range or lower offer credit-building tools to help you build your score; some even offer rewards.

The cards featured here could get you on the right track to earn a better score and better cards.

Top cards for a credit score of 500 or lower

Best for simple credit building

Capital One Platinum Secured Credit Card

Learn more in Bankrate's review

• Bankrate’s view

  The Capital One Platinum Secured Credit Card is a great starter credit card for people who want to access credit with a low security deposit. It’s a no-annual-fee, secured and straightforward card, ideal for building credit.

  If you have bad credit or no credit, it’s a great choice because you may be eligible for a $49 security deposit ($99 or $200 minimum deposit possible, depending on your credit score), which is much lower than the deposit required on other cards designed for a credit score lower than 500.

• Pros and cons

  

  Pros

  • There’s potential for a low security deposit if you qualify.
  • You could be eligible to upgrade after six months.

  

  Cons

  • The high APR on any balance you carry could get expensive quickly.
  • This card has very few additional perks or features.

Best for avoiding fees

Petal 2 Visa® Credit Card

Learn more in Bankrate's review

• Bankrate’s view

  The Petal 2 Visa® Credit Card* skips several credit card fees and earns a decent rate of cash back, with the chance to boost your rewards rate with responsible card use. If you’re building credit and want to have some external motivation outside of your own discipline, this card’s rewards program can incentivize you to use credit responsibly while you raise your score.

• Pros and cons

  

  Pros

  • This card earns 1% to 1.5% cash back on everyday purchases, providing long-term value beyond building credit.
  • The card charges no fees and requires no security deposit.

  

  Cons

  • Other credit-building cards available have more competitive rewards programs and welcome offers.
  • You could have a sky-high APR and the card doesn’t have intro APR offers to give some relief on interest.

Best for no security deposit

Mission Lane Green Line Visa® Credit Card

Learn more in Bankate's review

• Bankrate’s view

  The Mission Lane Green Line Visa® Credit Card* charges an annual fee of up to $59 but skips the security deposit, making it a fairly affordable option for anyone with a credit score under 500. Security deposits are often expensive hurdles when accessing credit, but cards like this make a line of credit available with minimal financial commitment. This initial fee will dig into your credit limit, but cardholders have the opportunity for a credit line increase.

• Pros and cons

  

  Pros

  • This card doesn’t require a security deposit to open.
  • You could earn a credit limit increase with consistent good habits.

  

  Cons

  • The card may charge an annual fee depending on creditworthiness.
  • You can’t increase your low starting credit limit with a higher deposit like you can on a secured card.

Best for low security deposit

The secured Self Visa® Credit Card1

Learn more in Bankrate's review

• Bankrate’s view

  The secured Self Visa® Credit Card¹ is a unique card in the bad credit space. It only requires a minimum deposit of $100.

  If you prefer not to put down $100 to open the card, you can use a Self Credit Builder Account to eventually fund the security deposit. That account is similar to a credit-builder loan, which gives the cardholder both a credit card and a loan under their name. While this can be daunting, it’s a low-risk way to build credit faster than a more traditional credit card.

• Pros and cons

  

  Pros

  • You can qualify without a hard credit inquiry.
  • The issuer reports loan and card payments to all three credit bureaus, improving your credit mix.

  

  Cons

  • The card comes with no annual fee for only the first year; it charges $25 annually after that.
  • The APR is quite high, so carrying any balance on this card will prove costly.

Comparing the best cards for a 500 credit score

How to improve bad credit with a credit card

The more you can improve your credit score, the better your chances are of accessing higher-quality cards. As a lower-risk borrower, you won’t have to spend as much on the collateral requirements for cards geared toward people with 500 credit scores or lower. There are a few easy habits that can help you improve your credit score over time:

• Always pay on time (or early). Set reminders on your calendar or set up automatic payments to ensure you never get hit with late fees or negative marks on your report for paying late. Paying early may also help keep your total credit usage low. 
• Watch your credit report. See what’s making your score increase and decrease over time and adjust your credit habits accordingly.
• Pay off your balance in full. Paying in full makes sure you avoid interest and keeps your credit utilization ratio low.
• Keep your credit usage below 30%. Your Amounts Owed, which includes credit utilization, accounts for 30% of your credit score. A good rule of thumb is to try not to use over 30% of your total credit limit (across all cards). For example, if you have a $1,000 limit, it’s best to keep your balance under $300.

While these tips are simple, they can go a long way in helping you get a better score and get better credit cards in the future. So, make sure you keep an eye on your credit report over time and see where you can improve as you grow in your credit journey.

What’s next?

The bottom line

Don’t think that a low credit score leaves you out for the count on accessing decent credit cards. You may not get the most lucrative rewards rates and lowest fees, but you can build your way to better cards with responsible habits.

Be sure to pick a card that reports your progress to the major credit bureaus, never miss a payment and keep your credit utilization low. These steps can lead you in the right direction when done consistently over time.

*The information about the Petal 2 Visa® Credit Card and Mission Lane Green Line Visa® Credit Card has been collected independently by Bankrate. The card details have not been reviewed or approved by the issuer.